Home > Stages of Life > Death as an Integral Part of Life > Page One

Monetary Considerations

By Roger C. Bone, MD, reprinted with permission

Page Two of Two Pages

Insurance

Everyone has insurance—even people who do not think they do. For example, spouses and children are entitled to survivor benefits from the government if the deceased paid Social Security taxes. Social Security payments may prove to be substantial over time, particularly for children. One should also consider alternative insurance sources. Veterans and current members of the armed forces, for example, are sometimes allowed compensation for funeral or burial costs. The Veterans Administration will also provide counseling, vocational rehabilitation, and a monthly stipend to veterans whose illness can be traced to their time in the military. As mentioned earlier, consulting your employment health policies may reveal accumulated benefits from a previous job.

Obviously, a terminally ill person is not a good insurance risk. You will most likely find it difficult to increase the monetary value of your policy. However, your insurance agent or representative should be able to advise you on your alternatives and expedite the necessary paperwork. An often overlooked aspect is what to do with the money when it arrives after your death. This is an appropriate concern for a terminally ill person who is worried about a spouse's standard of living or a child's college education. Enlisting the aid of a financial advisor and drawing up a plan to deal with not only the insurance money, but also savings and other liquid money assets is a wise move.

As your health insurance policy is considered an asset, you should investigate its terms and level of coverage. What rules and requirements does it dictate in regard to hospital stays, special or experimental treatments, diagnostic measures, and long term and/or at-home based care? Policies may make provisions for nursing services or other alternative health care services. Full knowledge of the restrictions of your health insurance coverage will allow you to avoid unpaid medical bills and disappointment. You may also discover something you did not know before, such as the availability of certain assistance programs like Medicare and Medicaid.

Donations and Memorials

A person need not be rich to establish some type of remembrance in his or her name. A financial legacy is a way of telling an institution or an organization it had special meaning for you. The two most common beneficiaries are religious organizations and educational institutions. If you are unable to afford a monetary contribution, it may be possible to plant a tree on your favorite golf course or install a bench in a local park. In fact, anything is possible as long as people are informed ahead of time concerning your wishes.

Organizations, believe it or not, are sometimes wary of gifts, especially those that appear unannounced. Questions are always asked up front. Is the gift free and clear or are there unresolved state and tax implications? Does the gift have unreasonable or unacceptable conditions attached: one's oil portrait displayed at the church entryway or a scholarship limited to distributions to persons born during the first week of August? And, finally, will the gift cover the cost of what the person wants to do?

Again, a common theme throughout this chapter applies here: plan ahead. Set up a meeting early on with the organization or, at least, make a phone call. Most will have guidelines they will happily share with you. Also, inquire about their policy for memorial fund contributions from friends and family. If you adhere to their procedures, they will be more likely to follow your wishes.

Taxes

The old saying is there are two certainties in life—death and taxes. It may come as a surprise that someone is required to file an income tax return in your name on April 15th of the following year after your death. This return includes all applicable taxes. Forms can be dealt with routinely if there is a person designated to handle this responsibility. In addition, there may be tax implications involved in your will. You should discuss any questions with an income tax accountant or consultant.

Work Benefits

Individuals who learn they are terminally ill while they are still employed may face complex financial issues. There is the possibility you will be terminated, demoted, or reassigned to a different department. A confidential meeting with your human resources representative or personnel office may help to diffuse the situation. It is important to know whether your organization or firm provides the pertinent insurance, spousal benefits, and payment of accrued sick leave and/or vacation time. The American with Disabilities Act, passed by Congress in 1992, may protect your interests in this matter.

Responsible Dying

Finding out you are terminally ill is, without a doubt, something serious and intimate. At this point, you may be inclined to avoid or ignore impending financial issues; however, you must balance the seriousness of the illness with its implications. In turn, your friends and family may react in a similar manner. The biggest danger the terminally ill person faces is to be silent, to do nothing. You must find the courage to break the silence. Openly discuss practical matters, funeral arrangements, and personal concerns with your family. Helping them face these difficult issues now will help them handle the grieving process better after you are gone.

One caveat occurs to me here. A person must, despite responsible preparation for death, accept the condition that he or she cannot arrange everything. In addition, the patient needs to recognize that family members will be presented with unexpected complications and intense sadness no matter how much planning is done in advance. Their lives will naturally change as they grow older and, in turn, so will their needs. Allowing for their independence is a necessary part of responsible dying.

Friends and family will take their cues from the person who is ill. Their loss will be handled in a more positive manner if you do not assume they inherently know your wishes. Since everyone tends to have unique personalities, loved ones may interpret your thoughts and actions differently. In addition, they will be required to continue their own personal and business lives while they try to comfort you. They will be facing a world of financial realities at a time when they are also experiencing emotional vulnerability. If the person who is dying reaches out to them and states his or her intentions, the confusion will be minimal and the distress manageable. In this way, the ill and dying extend a loving gift to those who will survive them.

Putting one's personal and financial affairs in order leads to increased peace of mind for the person who is dying. The worries about how the family will survive and how they will manage through the illness itself, can hopefully be resolved. It restores one's sense of control over significant matters and will benefit family members for a long time.

The Checklist

In summary, I have listed below a series of recommendations, or a checklist, for organizing one's financial affairs. These suggestions are in no way meant to be all-inclusive. Nor do they pertain only to the terminally ill. It is prudent for anyone to make arrangements for the care of his family after death.

The Will. Consult with an attorney. Discuss information in the will with involved members of the family.

Power of Attorney. Prepare in advance for the transfer of financial decision- making authority to someone who is qualified to act on your behalf in case you become incapable of handling those matters yourself. Again, it would be wise to speak with an attorney.

Insurance. Investigate available benefit packages and study your options. Make an appointment to talk with your insurance agent or representative. Also, fully consider the terms of your policy and explore other possible sources of health insurance coverage. You may be eligible for Medicare, Medicaid, and/or Veterans Administration services for the sick and disabled.

Donations and Memorials. If you want to establish a memorial or donate money to a particular organization or religious group, discuss your wishes with the persons in charge and closely follow their guidelines.

Taxes. Be advised that there will be tax schedules and payments due after you are deceased. You may wish to consult a tax accountant or consultant.

Work Benefits. Examine work-related benefits.

© Copyright 1997, National Kidney Cancer Association — Return to Page One